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Saudi Arabia key player in the Islamic asset management space

Saudi Arabia a key player in the Islamic asset management space

: Wednesday, November 20 - 2013 @ 10:30

Sector continues to lag behind, says managing director at Thomson Reuters

Thomson Reuters, the world’s leading provider of intelligent information for businesses and professionals, announced the initial findings from its Global Islamic Asset Management Report 2014 today, prepared in collaboration with Lipper.

Earlier this year, Thomson Reuters launched the global Islamic asset management survey to gather market consensus on the state and direction of the sector. The survey targeted both investors and asset managers in order to present a fuller picture about the industry.

The report provides unique insights into the development of the sector, highlighting key milestones reached this year, critical challenges to growth, as well as proposed solutions to further develop the Islamic asset management sector.

Russell Haworth, managing director in the Mena region, Thomson Reuters, says:  “The Islamic asset management space continues to lag behind in terms of growth, when compared with Islamic banking. Thomson Reuters is committed to building greater insights and analysis of the overall Islamic Finance sector, and Shari’a complaint asset management is a critical component of that industry. This year’s report will act as an important benchmark for the industry as it continues to grow.”

With assets under management (AUMs) in Saudi Arabia exceeding $6 billion, the kingdom accounts for 20 per cent of the global market and is the second largest market for Islamic funds globally. Saudi Arabia is also the second largest hub for Islamic funds, with more than 786 globally.

Dr Sayd Farook, global head of Islamic capital markets at Thomson Reuters, says: “Attracting institutional investors is seen as a key requirement for the growth and long-term sustainability of the Islamic asset management industry.  Despite the lack of institutional participation, we see positive signs, such as the development of pension assets in Islamic countries. We estimate GCC pension assets to be $180bn. Attracting a small portion of these could significantly increase AUMs for Islamic asset managers.

“Saudi Arabia is a step ahead of other GCC countries, as asset managers adopt innovative strategies to increase their investor base. For example, this year SEDCO Capital is coming out with their first Islamic fund that will be compatible with socially responsible investment parameters. The fund will have environmental, social and corporate governance principals incorporated into the fund investment strategy, broadening its appeal to a new range of investors.”

The Global Islamic Asset Management Report 2014 will be launched at the Global Islamic Economy Summit, organised by Thomson Reuters and the Dubai Chamber of Commerce and Industry, from November 25 to 26.

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Wednesday, November 20- 2013 @ 10:30 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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